Mortgage advisor - obligation to pay

new_home_owner_3

LilacPixie wrote: »

I have a mortgage adviser, he has found us a deal we are happy with, he gets paid commission by the lender. We could apply for this deal direct but we wont. My reasoning is this. OH has debt and bonuses so by no means straight forward, I do not have time chasing up things, calling lenders, printing out various bits to be handed into branches during working hours. My adviser is happy to come collect that from us at our current home if needed.

Basically I think allowing an adviser to claim commission and saving me stress and hassle is well worth it.

Thats your choice i prefer to do my own leg work, first time i seen a advisor i told him the deal i could get and he could not get anywhere near it and it save me hundreds of pounds.

Second time was last year, they was pestering me to see the advisor, i said ill speak to him on the phone, told him what deal i could get and he offered me a 400 pound cash back deal and told me he couldnt get anywhere near the deal i had got for myself.

I suppose if you are in bad debt, a mortgage advisor might be a option, but theres plenty of lenders who will take on people with debt problems, however the rates are a lot higher.

Its human nature any mortgage advisor will push you towards the deal he will gain the most commision on, i mean say a mortgage advisor was sorting a mortgage for 100,000 pounds and say lender one he would get 1% comission and the rate was 4.29 percent, but lender 2 would give him 2 % commission but the rate was 4.99% which one do you think he would advise you to take?

I know it would be the one at 2% all day long, you might think hes doing a great job but hes costiing you 50 pound a month extra, so my advice to anyone is check any deal you have through a mortgage advisor.

If you do know what deal you want and the mortgage advisor can get it you at no cost to yourself then fair enough, but when i told them the deal and the lender they didnt want to know.

new_home_owner_3

ILW wrote: »

If this was the case then the OP should pay. If not I would not have thought the advisor would even be asking for any payment.

Yes but he hasnt used them he has listened to what they can offer and has chose not to use them.

SJCJDCLSC

I don't think there is anything wrong with this - who doesn't look around the shops for products and then look online to find the best price? I'm looking at a new pc, the nice lady at my local Sony shop demonstrated the one I like to me, they are selling it for £1600, I've come home and found the exact same model for £1300 online so if I chose to buy it will not be from the Sony shop in town, it will be from an online store much cheaper!

Yes, she has put the work in but that is Sales for you.

Mortgage advisors know their game and they know not all the work they will do will result in money, surely??

As for us, we've paid £250 to our mortgage advisor AND she gets commision from the mortgage. I suspect we could have got a better mortgage on our own. But we didn't know what we were doing, we changed our minds about things and she adapted to our needs, she's spent literally hours working for us, meeting us, calling us, calling mortgage companies, we had some special situations so she chose a mortgage that could adapt to us. It's been very easy for us really, £250 seems like a good deal considering and we're only tied to the mortgage for 18 months, by which point we might feel happy to find our own better deal as a remortgage.

Horizon81

Very good debate and one which I had with myself not too long ago. It all depends what you agree with the mortgage advisor up front. Mine was clear I pay them a charge (£200ish) plus they get a commission from the lender (over a grand for what I could gather) but that I'd only pay after the sale went through. In other words, if you don't get a deal via them then you don't pay them anything. But in the meantime I had a good look on moneysupermarket and fsa websites which list all deals - ones you can get yourself and ones which are only available through a broker (referred to as 'intermediary' on these sites). Anyone with a basic grasp of maths can calculate whether it's more cost effective to go for a deal only available via a mortgage broker or find a better deal yourself.

From my findings, it made a lot more sense to find the best deal myself. No offence to mortgage brokers, but I really couldn't see what they offerred that I couldn't find myself. Indeed they offer a service and if they charge for it then so be it. I can't see why people are being so nasty to the OP - if the advisor had wanted paying for their advice then anyone worth their salt would have ensured a contract was signed up front.

betmunch

new_home_owner wrote: »

Its human nature any mortgage advisor will push you towards the deal he will gain the most commision on, i mean say a mortgage advisor was sorting a mortgage for 100,000 pounds and say lender one he would get 1% comission and the rate was 4.29 percent, but lender 2 would give him 2 % commission but the rate was 4.99% which one do you think he would advise you to take?

I know it would be the one at 2% all day long, you might think hes doing a great job but hes costiing you 50 pound a month extra, so my advice to anyone is check any deal you have through a mortgage advisor.

This is absolute nonsense. There is no way a professional advisor would push for a higher rate for the client just to earn extra commission.

Your either talking !!!!! to stir up trouble, or you have been burnt by a very poor Advisor in the past. Or both.

Every industry has a few bad eggs, but I stand by my comments that a professional advisor would NEVER do this